But Mexico's economy is growing, unemployment is falling and its debt was upgraded earlier this year.

That's exactly the opposite situation in Brazil, which had been the region's biggest success story until recently. Brazil's economic size, performance and potential surpassed all others in the region. But now its economy is in recession, its debt has been downgraded to junk status and the future outlook appears dim.

"Every problem and every headwind that you think of with Brazil, the reverse is happening in Mexico," says Neil Shearing, chief emerging market economist at Capital Economics.

Mexico on pace to be region's best performer

Shearing and other experts project Mexico's economy will grow about 2.5% this year, ranking among the top performers. Some project Mexico to be the best performer next year.

By contrast, Brazil's economy is expected to shrink 3.3% this year, according to Bank of America(BAC)'s forecast. Experts say its recession will likely extend into next year.

Stocks are doing a little better in Mexico. Its stock market index, IPC, is barely positive so far this year. But Brazil's Bovespa is down nearly 8% over the same time.

Just as Brazil's worst problems -- such as the Petrobras scandal -- are self-inflicted, some of Mexico's economic resiliency are self-made too, economists argue.

Brazil is still Latin America's biggest economy, and Mexico is the second largest. But that gap is steadily narrowing and Mexico has many things going in its favor at the moment to make it Latin America's best economy.

Mexico has a growing manufacturing sector, particularly in autos, and it ships lots cars to the United States. Brazil's economic growth reflects the infrastructure-fueled growth in the Chinese economy. Brazil ships commodities like oil, iron ore and sugar to China to support its economic growth.